LOOSE CANNON

July 11, 2014

  • 51 Bankruptcy
  • 51III The Case
  • 51III(C) Voluntary Cases
  • 51k2252 Good Faith; Motive
  • 51k2252.1 k. In General.

51 BankruptcyWhile proof of debtor’s bad faith in filing for Chapter 7 relief can constitute “cause” for dismissal of case under “for cause” dismissal provision, “bad faith” dismissal is not to be used as a loose cannon pointed in the direction of a debtor whose values do not coincide precisely with those of court; rather, dismissal for bad faith should be limited to extreme cases, such as when debtor has frivolous, noneconomic motive for filing petition, when there is a sinister or unworthy purpose, or when there has been an abuse of judicial process.

In re Snyder,2014 WL 1347483 (Bankr. D.N.M.)

Suggested by Barbara Bozonie, Principal Attorney Editor; Thomson Reuters; Eagan, Minn.